As the Deputy is aware, arising from a November 2021 Government decision that a levy be imposed on the construction sector to contribute towards the cost of the Mica Redress Scheme, the Defective Concrete Products Levy was announced as part of Budget 2023.
The Defective Concrete Products Levy (“DCPL”) applies, at a rate of 5% of the market value of the concrete products within scope of the levy, at the point of first supply of those products in the State on or after 1 September 2023. The levy applies to both supplies within the State and into the State (from outside the State) to ensure fairness of application of the levy.
The following products come within the scope of the levy:
(a) products, containing concrete, that are required to comply with the following EU Harmonised Standards (or adapted national version of such Harmonised Standard), as set out in Schedule 36 to the TCA 1997 -
- EN 771-3:2011+A1:2015 Specification for masonry units - Part 3: Aggregate concrete masonry units (Dense and lightweight aggregates), and
- EN 771-4:2011+A1:2015 Specification for masonry units - Part 4: Autoclaved aerated concrete masonry units,
and
(b) ready to pour concrete which is chargeable to Value Added Tax at the rate of 13.5% under paragraph 16(1) of Part 4 of Schedule 3 of the Value Added Tax Consolidation Act 2010.
Products, including pre-cast products, not falling within the above outlined EU Harmonised Standards are not within the scope of the levy and therefore the levy does not apply on supplies of such products.
Under the legislation giving effect to the DCPL, all supplies of ready to pour concrete are, from 1 September 2023, within the scope of the levy including where the concrete is utilised in the manufacture of pre-cast products. This is the case regardless of whether the supplier of the ready to pour concrete is in the State or the ready to pour concrete is sourced from outside the State. Where the supplier is in the State, it is the supplier who is the chargeable person for the purposes of the DCPL. Where a person acquires ready to pour concrete from outside the State, and uses it in the course of a business in the State, that person is the chargeable person for the purposes of the DPCL.
While there are no exemptions from the levy provided in the legislation as enacted, I announced on Wednesday 6th of September my intention to bring forward legislation in Finance Bill 2023 to exclude the value of pouring concrete used in the manufacture of pre-cast products from the scope of the levy with effect from 1 January 2024. I intend to introduce a refund scheme for the interim period of 1 September 2023 to 31 December 2023. Details of the amendments will be published in Finance Bill 2023.
Further information on the DCPL, including the obligations of a chargeable person, is available on the Revenue website at: www.revenue.ie/en/self-assessment-and-self-employment/dcpl/index.aspx. My Department will also respond to all queries it has received directly regarding the DCPL.
